An economy is operating with optimum efficiency if
A. the price of the product is greater than marginal cost.
B. the production of more of commodity A entails the production of less of commodity B.
C. marginal cost of output is greater than marginal utility of output.
D. an increase in output would result in a decrease in average cost per unit.
Answer: B
You might also like to view...
Which of the following is one of the chief reasons for the change in the participation rate of married women in the U.S. workforce?
Suppose a country operates on its production possibility frontier when it produces 1000 books and 1000 tables. The combination of ________ reflects ________
A) 500 books and 1000 tables; an inefficient but attainable point B) 1000 books and 500 tables; an efficient point C) 1000 books and 1000 tables; a free lunch D) 500 books and 500 tables; an attainable and efficient point E) 1000 books and 1500 tables; a free lunch
Total spending on final goods and services in an economy must equal total:
A. production value. B. revenues from all transactions. C. profits. D. investment.
From 2007 to 2012, the U.S. personal savings rate rose. If the additional savings were not translated into investment, Keynes would predict that aggregate income would:
A. decline and remain there. B. rise and remain there. C. rise indefinitely. D. accelerate.